Kohl’s profit beats Street, lowers outlook

Menomonee Falls, Wis. Kohl's Corp. on Thursday reported a larger-than-expected quarterly profit, but forecast a holiday fourth quarter below Wall Street estimates.

Net profit rose 20% to $193 million in the third quarter ended Oct. 31, up from $160 million a year earlier.

Sales rose 6.5% to $4.1 billion, just above analysts' estimates of $4.0 billion, and comp-store sales were up 2.4%.

The company benefited from tightened inventory controls and sales of exclusive brands such as Dana Buchman and Simply Vera Vera Wang.

Department stores have only recently begun to see sales stabilize. Last week, Kohl's reported same-store sales had risen 1.4% in October.

Kohl's said it expects total sales to rise 3% to 6% in the fourth quarter, with same-store sales ranging from a 1% decline to a 2% gain.

"As we enter the fourth quarter, we will continue to focus on providing value for our customers as we expect them to continue to be conservative in their spending during this holiday season," Kohl's CEO Kevin Mansell said in a statement.

Kohl's operated 1,059 stores at the end of the third quarter, up from 1,004 a year earlier.